Dangote backs CNG drive with $280m investment

Dangote Cement Plc said that it has made significant investments exceeding $280 million in Compressed Natural Gas (CNG) technology and infrastructure.

According to the firm, the investments which have made it the operator of the largest fleet of CNG trucks, is in line with the drive of President Bola Ahmed Tinubu for use of cheaper and cleaner energy by Nigerians.

In a statement, the firm said President Tinubu, whose commitment to CNG deployment and clean energy is unmatched in Africa, has maintained his administration’s drive to creating a conducive environment for private sector investments and expanding Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth.

It said the President, as part of this initiative, ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods.

It also recalled that the President emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector. He stated that CNG transportation is an economic necessity for Nigeria, signalling a significant shift in the country’s approach to public transportation and energy use.

The Dangote Cement said the over $280m investment not only solidifies its leadership in the CNG sector but also reflects its dedication to mitigating climate change and supporting a transition to a low-carbon economy.

The statement quoted Group Managing Director of Dangote Cement Plc, Arvind Pathak, as saying the investment is aimed at acquiring 100% CNG trucks as part of a long-term plan to transition its entire fleet to CNG.

This move marks a significant milestone in Dangote’s clean energy transition, with the objective of operating most of its fleet on CNG by mid-2026. As of this month (October), the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting an additional 1,600 CNG trucks; totalling 3,100 before the end of the year.

Pathak stated: “By mid- 2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.

“He said plans are afoot to aggressively pursue this timeline of deployment, beginning from the first quarter of next year.

“We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance”.

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